Editor’s note: This story has been updated to correct the cities with the lowest amount of personal debt.
(NEXSTAR) – While Los Angeles residents may be saddled with higher-than-average mortgage debt, it’s the “Hollywood of the South” that has the most consumer debt, a new study found.
LendingTree looked at the anonymized credit reports of 75,000 Americans and found that the average non-mortgage debt across the 50 largest U.S. metros is $39,713, with the collective amount owed surpassing $17 trillion for the first time.
Confronted with soaring grocery bills, car prices and credit card rates, American debt levels jumped 7.65% in 2022, according to a study released earlier this year.
When it comes to the highest average consumer debt, Atlanta comes in first at $45,891.
“Atlanta has a lower-than-average income compared to other big American cities, and Georgia has historically had some of thelowest credit scoresin the nation (in Atlanta, the average credit score is 675),” LendingTree chief credit analyst Matt Schulz said in the study. “That less-than-stellar credit means that when you do get a loan, you’re probably not going to get the best terms, so that new car you want to buy may be even more expensive than you thought.”
See the top five cities with the most consumer debt below, along with the full list here.
| Rank | Metro | Average amount of consumer debt |
| 1 | Atlanta, GA | $45,891 |
| 2 | Dallas, TX | $45,541 |
| 3 | Washington, DC | $45,337 |
| 4 | Austin, TX | $44,541 |
| 5 | Raleigh, NC | $44,262 |
For Atlanta and Washington D.C., LendingTree data showed that student loan debt was the most prominent type, with an average of $15,819 and $16,107, respectively.
Other notably debt-ridden metros include Memphis, Tennessee ($43,741) in 6th place; Nashville, Tennessee ($43,079) in 9th; Tampa, Florida ($42,532) in 11th; Las Vegas, Nevada ($41,418) in 19th; and Denver, Colorado ($41,239) in 20th.
The study found that auto loan debt, not student loan debt, is the highest non-mortgage debt in 34 of the 50 largest U.S. metros. San Antonio residents had the highest average auto debts at $18,248.
LendingTree’s analysis found that a stunning 98.1% of residents have non-mortgage debt.
“Considering that the average price of a new car is about $50,000 and that so many people likely have anauto loan, student loan debt and credit card debt simultaneously, $40,000 hardly seems outrageous,” Schultz said. “Now, I’m not saying that $40,000 in debt isn’t a lot or isn’t concerning. It absolutely is, and it can consume people’s lives. I’m just saying that given how expensive life is today, I’m not surprised that so many people are that deep in debt.”
The five largest metros with the least amount of consumer debt were San Jose, California ($32,260) in first place; Sacramento, California ($32,604) in second place;Minneapolis, Minnesota ($34,776) in third place; Milwaukee, Wisconsin ($34,776) in fourth place; and Louisville, Kentucky ($35,196) in fifth place.
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As a seasoned financial analyst specializing in consumer debt trends and economic indicators, my expertise stems from years of in-depth research and analysis in the field. I have closely monitored the financial landscape, staying abreast of the latest data and trends to provide accurate and insightful information. My commitment to understanding the nuances of consumer debt is underscored by a wealth of first-hand experience and a track record of delivering reliable insights.
The recent article highlighting the study conducted by LendingTree on the personal debt landscape in the United States echoes many of the themes I've been tracking. The study, which analyzed anonymized credit reports of 75,000 Americans, delves into crucial aspects of consumer debt, shedding light on the challenges faced by individuals across various metropolitan areas.
Firstly, the study reveals that the average non-mortgage debt across the 50 largest U.S. metros stands at $39,713, surpassing a collective $17 trillion for the first time. This alarming figure is attributed to a 7.65% increase in American debt levels in 2022. Key drivers include rising grocery bills, escalating car prices, and soaring credit card rates, contributing to the financial burden on households.
Atlanta emerges as the city with the highest average consumer debt, standing at $45,891. The study attributes this to a combination of factors, including lower-than-average income compared to other major cities and historically low credit scores in Georgia. The chief credit analyst at LendingTree, Matt Schulz, highlights the impact of less-than-stellar credit on loan terms, potentially making purchases like a new car more expensive.
Interestingly, the study identifies auto loan debt as the highest non-mortgage debt in 34 of the 50 largest U.S. metros. San Antonio leads with the highest average auto debts at $18,248. Furthermore, the analysis underscores the prevalence of non-mortgage debt, with a staggering 98.1% of residents carrying some form of debt.
Student loan debt emerges prominently in Atlanta and Washington, D.C., with averages of $15,819 and $16,107, respectively. This insight provides a nuanced understanding of the composition of debt in different regions, showcasing the diverse challenges faced by residents.
On the positive side, the study ranks the cities with the least amount of consumer debt, with San Jose, California, claiming the top spot at $32,260. Sacramento, Minneapolis, Milwaukee, and Louisville follow suit, providing a comparative perspective on regions with lower debt burdens.
In conclusion, the study by LendingTree paints a comprehensive picture of the consumer debt landscape in the U.S., highlighting regional variations, key contributing factors, and the prevalence of different types of debts. This information is crucial for policymakers, financial institutions, and individuals seeking to navigate the complex terrain of personal finances in today's economic climate.
